Metis’ launch of the first-ever decentralized sequencer with revenue sharing has put it on the radar of cutting-edge layer 2 capability, and rightfully so. This makes Metis the only layer 2 that can boast decentralized security guarantees for its sequencer with sequencer-generated revenue sharing for users. On top of this, Metis has also announced a massive half-a-billion-dollar ecosystem development fund (EDF) to spur innovation and development across its dApps and projects. When you get one of the biggest potential bull markets heating up and two hugely bullish catalysts at play, there’s only one destination Metis is heading to — Andromeda!
While Metis aims to become the leading layer 2 protocol in the space, it cannot achieve this without ample liquidity boosting the protocols in the ecosystem. Luckily, Metis has a secret weapon for this, say hello to Hercules, Metis’ newest champion!
Hercules: The liquidity Layer of Metis
As the Metis revolution to become the top layer 2 protocol unfolds, it must have the liquidity to support thousands of new users, millions in additional trading volume, and millions in added TVL within the ecosystem. Without this, both protocols and users alike would suffer from the effects of unfavorable trades, stagnant liquidity, and overall poor capital efficiency. These issues will also result in a liquidity plague during bear markets, where protocols across the crypto space already suffer from decreased liquidity and volume.
Why is Hercules the answer?
At its core, Hercules exists both as Metis’ primary DEX as well as the liquidity infrastructure layer of the entire Metis ecosystem. The project itself is modeled off of the highly successful Camelot DEX model that revolutionized the liquidity landscape on Arbitrum and will carry over those exact liquidity tools and features to Metis — all of which will be fully customizable to meet the unique needs of Metis builders while offering real yield opportunities to users.
Some of these innovative features include:
- spNFTs- Allow LP rewards to be reused for additional user/liquidity participation for increased yields.
- Nitro Pools- Allow projects to incentivize additional liquidity for pairs in a completely permissionless and customizable way. Nitro pools can be custom-tailored towards a project’s needs, as they can set their own LP /reward parameters and even target specific users/LPs they want to reward to further boost liquidity and user participation.
- Escrowed Tokenomics- Promotes a sustainable long-term protocol that enables real yield for holders.
- xTORCH plugins- Contracts that enable access to Dividends for real yield, Yield Boosters to increase APR, Launchpad, Gauge, and more.
- Multi-layer Rewards- Farm, stake, earn, boost, and earn again! Hercules provides multiple reward layers on top of baseline farming and staking.
By utilizing this advanced liquidity infrastructure, protocols throughout Metis will thrive from a monsoon of deep and adaptable liquidity that Hercules has set the stage for. This intricate web of liquidity is key to creating an industry-leading Layer 2 ecosystem unlike any other.
Who Else is Bullish On Hercules?
Metis’ very own Executive lead, of course!
During an exclusive CoinMarketCap community live session, the host asked for one piece of alpha from each protocol, Executive lead Tom Ngo of Metis mentioned only the Hercules project as his key point of alpha (58:55).
“[Hercules] is based on the Camelot exchange form arbittrum that has shown highly successful utility and design and support for the ecosystem. Metis will be the only other chain that has the same base code with the blessing of the team, that is our alpha.”
Thought that was it? Metis’ Business Development lead, Matt Gunn also shared his thoughts on Hercules:
“Hercules is a fundamental part of the Metis ecosystem. As a highly efficient and composable DEX and launchpad, Hercules will be an incredibly powerful tool for protocol builders and individual users alike.”
The bullishness surrounding Metis doesn't stop there! Today it was announced in a recent publication by Decrypt that Metis has pledged a whopping $1 million grant from their ecosystem development fund for the increased development of Hercules.
With Metis’ acknowledgment of the bullish catalyst that is Hercules, one can get a sense of the vital importance behind Metis’ new liquidity layer!
Conclusion
As Metis prepares to ramp up to become the leading layer 2 protocol, it will need to employ strategies that are proven to boost the overall economy and capital efficiency of the ecosystem. By introducing a generous rewards mechanism to a well-crafted cocktail of liquidity-boosting features, Hercules can foster a one-of-a-kind customizable liquidity layer that no other DEX on Metis can match. This is precisely why Hercules is being heralded as one of Metis’ largest growth narratives.
